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Climate Change
MDF’s climate-related investments align with the government’s priorities, as outlined in Sri Lanka’s Nationally Determined Contributions and National Adaptation Plan. In 2024, MDF signed 11 climate-relevant partnerships, demonstrating greater appetite from the private sector for climate solutions with a compelling business case. Business investment in climate resilience can be deterred by high upfront costs and unproven or longer-term benefits. MDF aims to identify and demonstrate viable business cases for climate adaption and resilience and support partners by derisking their investments.
In agriculture, MDF co-invested with agribusinesses to develop climate-resilient farmer clusters and explore the integration of technology to enhance climate resilience in Sri Lanka’s dry zone. MDF promoted improved fertiliser to reduce emissions from synthetic fertiliser use and maintain soil health. In specialty coffee, MDF supported coffee processors to expand the establishment of drying houses to reduce vulnerability to unpredictable weather. MDF capitalised on the tourism industry’s growing commitment to environmental responsibility and co-invested with businesses to train staff on green skills and practices, adopt green solutions such as emissions measurement and energy management, and position towards more responsible tourism segments, supporting Sri Lanka to establish itself as a sustainable tourism destination.
Climate Change Quick Fact
In 2024, Sri Lanka began formulating its first Climate-Smart Agriculture (CSA) Investment Plan to address an anticipated 10–12% yield reduction due to climate change.
In 2024, Sri Lanka submitted its first Biennial Transparency Report (BTR) on climate change to the United Nations Framework Convention on Climate Change, under the Paris Agreement, which it has been a party to since 2016.
Inclusion
Gender and social inclusion are central to MDF Sri Lanka’s approach, with 84 per cent of the country portfolio contributing towards women’s economic empowerment in 2024.
In agriculture, MDF supported a lead agribusiness to review and better understand women’s roles in the value chain to guide more targeted investments. Our work in specialty coffee continues to drive financial empowerment for women farmers and is changing social norms within coffee farming communities. In tourism, MDF collaborated with the Sri Lanka Tourism Alliance (SLTA) to share findings from a national survey to identify opportunities for women’s employment in tourism and is working with a hotel chain to improve its retention of staff.
MDF engaged with the Disability Resource Centre of the Employers’ Federation of Ceylon, an Organisation for People with Disabilities (OPD) affiliated with Sri Lanka’s private sector employers. The OPD supported MDF to refine its approach to investment design and monitoring.
In recognition of MDF’s alignment with Vuvale and NDP priorities and the program’s technical capabilities and extensive networks, the government outsourced several important projects to MDF. To provide dedicated support to these government requests, MDF created a ‘Special Projects’ unit in 2024.
